Native Forestry & Regeneration
Native forest is making a comeback in New Zealand’s carbon landscape. With no LUC restrictions, permanent storage potential, and biodiversity benefits, indigenous forestry offers a compelling pathway for many landowners.
Why Native Forest for Carbon?
No Land Use Restrictions
Unlike exotic forestry, native forests face no restrictions based on Land Use Capability (LUC) class. You can register native regeneration on any eligible land, including high-quality farmland.
This makes natives the only carbon option for some landowners who want to convert good land to forestry.
Permanent Carbon Storage
Native forests naturally align with the permanent forest category. They store carbon in perpetuity — not just in trees, but in soils and organic matter that’s currently not counted in ETS calculations.
Biodiversity and Ecosystem Services
Beyond carbon, native forests provide:
- Habitat for indigenous species
- Improved water quality
- Erosion control
- Cultural and spiritual values
- Resilience to climate change
These “co-benefits” are increasingly valued, even if not directly monetised in the ETS.
Types of Native Carbon Forestry
Natural Regeneration
The simplest and cheapest approach — let native bush come back naturally.
How it works:
- Retire land from grazing or other use
- Control pests that suppress regeneration
- Allow natural seed dispersal and succession
- Register once forest is establishing
Typical succession:
- Pioneers colonise (gorse, broom, or native shrubs)
- Early natives establish (kanuka, manuka, mahoe)
- Canopy closes, suppressing weeds
- Later successional species arrive (rimu, matai, kahikatea)
Cost: Very low (mainly pest control and fencing) Speed: Slow — 5-15 years to meet forest definition Carbon: Lower early earnings, sustained long-term
Planted Native Forest
Active establishment with nursery-raised plants.
How it works:
- Prepare site (spray weeds, cultivate if needed)
- Plant native seedlings at appropriate densities
- Maintain plantings (releasing, pest control)
- Register when establishing
Typical species:
- Pioneers: manuka, kanuka, pittosporum, coprosma
- Early canopy: kowhai, titoki, rewarewa, mahoe
- Canopy: totara, rimu, matai, kahikatea, kauri (north)
- Understory: tree ferns, shrubs
Cost: Higher ($5,000-15,000+/ha depending on species and site) Speed: Faster establishment than natural regeneration Carbon: Earlier onset of sequestration
Transitional/Nurse Crop Approach
Using exotic or weed species to nurse native establishment.
How it works:
- Allow gorse/broom or fast-growing exotics to establish first
- Natives colonise underneath
- Nurse crop gradually suppressed by native canopy
- End state is native forest
Common scenarios:
- Gorse-covered hillsides transitioning naturally
- Wilding pines being phased out for natives
- Mixed planting with exotic nurse species
Carbon: Can earn credits from establishment, with long-term native outcome
Carbon Earnings from Natives
The Lookup Table Situation
Currently, all native species use a single national lookup table. This averages across all indigenous types and doesn’t distinguish between fast and slow-growing natives.
Key figures:
- Average sequestration: ~6-7 tCO₂/ha/year
- Averaging age: ~30+ years
- Long-term stock: ~300+ tonnes/ha
The limitation: Fast-growing natives like kanuka earn the same per-hectare as slow-growing podocarp. There’s no incentive in the current system for choosing faster-growing indigenous species.
The opportunity: MPI is reviewing lookup tables. Future versions may differentiate between native forest types, potentially rewarding faster-growing species appropriately.
Earnings Example
For 10 hectares of regenerating native bush:
| Year | Carbon Stock | NZUs Earned | Cumulative |
|---|---|---|---|
| 5 | 35 t/ha | 350 | 350 |
| 10 | 70 t/ha | 350 | 700 |
| 20 | 140 t/ha | 700 | 1,400 |
| 30 | 200 t/ha | 600 | 2,000 |
| 50 | 280 t/ha | 800 | 2,800 |
At $60/NZU, 2,800 units = $168,000 over 50 years (or ~$3,360/year average)
Compare to 10 ha of radiata pine under averaging: ~5,500 units × $60 = $330,000 — but earned in ~16 years.
The native approach earns less, but permanently stores carbon and generates income over decades.
Practical Considerations
Site Preparation
Weed control:
- Manage competing grass and weeds before planting
- Ring-spraying or spot-spraying around planted seedlings
- Ongoing releasing until canopy closes
Fencing:
- Exclude stock completely
- Consider possum-proof fencing for vulnerable sites
- Deer fencing in some regions
Access:
- Maintain access for pest control and monitoring
- Plan tracks to minimise disturbance
Pest Control
Pests are the biggest threat to native regeneration:
Possums: Browse native foliage, suppress regeneration Rats: Eat seeds, reducing natural spread Stoats/ferrets: Kill native birds that disperse seeds Deer: Browse palatable species heavily Goats/pigs: Damage understory and roots
A sustained pest control programme is essential for healthy native forest development.
Timeframes
Native forestry requires patience:
| Stage | Timeframe |
|---|---|
| Initial establishment | 3-5 years |
| Forest definition met | 5-15 years |
| Canopy closure | 15-30 years |
| Mature structure | 50-100+ years |
This isn’t a quick return — it’s a generational commitment.
Financial Support Options
Native Afforestation Grants
Various programmes have supported native planting:
- Government forestry grants (varying over time)
- Regional council funding
- Erosion control schemes
- Biodiversity funding
Check current availability — these programmes change frequently.
Community Conservation
Partnerships with conservation organisations can provide:
- Technical advice
- Pest control support
- Plant supply
- Monitoring assistance
Hybrid Approaches
Some landowners plant exotics on main carbon areas and use native funding for stream margins, steep slopes, and biodiversity areas — capturing multiple value streams.
Native Forestry and the Permanent Category
Natives and permanent forestry are a natural fit:
Why they align:
- 50-year commitment matches native timeframes
- No expectation of harvest
- Stock change accounting (no averaging cap)
- Continuous carbon earnings
Registration approach: Most native forest suits the permanent forest category, earning under stock change accounting without averaging limitations.
Common Native Forestry Questions
”Can I harvest my native forest?”
Limited harvesting may be possible under the permanent category (selective removal). Major harvest of indigenous timber requires permits under the Forests Act.
”Does the forest have to be solid native?”
No. Transitional forests with gorse/broom and emerging natives can be registered. The trajectory toward indigenous forest matters more than current composition.
”What about honey from manuka?”
Compatible. Beekeeping in registered native forest is allowed and can add significant revenue — $500-2,000+/ha/year depending on location and manuka density.
”Can I get QEII covenant and ETS credits?”
Sometimes. If the covenant land includes post-1989 native regeneration, it may be eligible. Many older covenants cover pre-1990 forest and aren’t eligible.
Key Takeaways
- No LUC restrictions — natives can go anywhere
- Permanent category fits — 50-year commitment aligns with native timeframes
- Slower earnings — but sustained over decades
- Co-benefits matter — biodiversity, water, culture
- Pest control essential — investment required
- Patience required — this is generational work